PETALING JAYA: The government should help the private sector to grow by creating better business policies rather than getting directly involved in business, says an economist.
Firdausi Suffian, a lecturer with Sabah UiTM, said if the government can make it easier for the private sector to do business, Putrajaya could then focus on negotiations with foreign countries and businesses, and on attracting investment in local companies.
Firdausi said this in response to a warning by former second finance minister Johari Ghani against the government getting involved in business. Citing the 5G rollout as an example, Johari said the government should have allowed the private sector to deal with it fully.
Firdausi said there had been too many political appointments as heads to government-linked companies and government-linked investment companies.
Those appointed were closely linked to those in power or who supported the government of the day. They would not be able to set the needs of the business apart from their own interests.
“So they would make the wrong calls,” he said.
Carmelo Ferlito of the Center for Market Education said government involvement in business was always destined to fail, whereas entrepreneurs had practical knowledge about doing business.
“The government can possess technical knowledge but not entrepreneurial knowledge, because it operates outside the market,” he said.
Source: https://www.freemalaysiatoday.com/category/nation/2023/02/21/help-businesses-grow-through-better-policies-govt-told/